Oct
19
2013

Yahoo Could Reduce five % Of Its Employees

Yahoo, the beleaguered Web portal, plans to reduce up to 650 jobs as soon as Tuesday, according to sources with information of the predicament.

The layoffs come as Carol A. Bartz, Yahoos chief executive, tries to decrease expenses amid sluggish growth in Yahoos on the internet marketing business. They would be the most current in a series of purges at the Sunnyvale, Calif., firm more than the last handful of years.

Kim Rubey, a Yahoo spokeswoman, declined to comment.

The expected cuts, representing up to five percent of the general workforce, are aimed at Yahoos items unit, according to individuals briefed on the matter who requested anonymity due to the fact they had been not authorized to speak on the record. The solution group, which designs and builds customer and advertising services, is led by Blake Irving, a former Microsoft executive who was hired by Ms. Bartz eight months ago.

Yahoo had 14,100 workers at of the end of October.

Ms. Bartz is attempting to reinvigorate Yahoo, which has suffered from years of excessive bureaucracy and lack of innovation. The organization failed to capitalize on social networking a niche now dominated by Facebook and lost its battle with Google in search.

To cut costs, Ms. Bartz handed more than Yahoos search engine and associated advertising technique to one-time rival Microsoft. She also teamed with third parties to handle Yahoos dating, job listings and actual estate region. Meanwhile, Ms. Bartz has tried to construct on Yahoos strengths by adding editorial employees to its media properties and inviting amateurs to contribute news articles.

Investors are placing intense stress on Ms. Bartz, who took charge of Yahoo practically two years ago, to show results. But she has repeatedly mentioned that it will take some time just before the firm tends to make considerable progress.

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